Ministers feared the Vetting and Barring scheme, designed to protect children from paedophiles and which was due to be introduced in England and Wales next month, would drive a “wedge” between adults and children.

Theresa May, the Home Secretary, will say on Tuesday that the scheme is being stopped, and will be redesigned along “common sense” lines.

Nine million people who wanted to work with children or vulnerable adults would have had to register on the database, or face a £5,000 fine.

The plan was heavily criticised by nurses, teachers and actors such as Sir Ian McKellen, who said the measures were excessive.

It would also have affected parents who signed up for school driving rotas for weekly sports events or clubs.

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Last night, 66,000 employers, charities and voluntary groups were being informed of the sudden change of plan.

Mrs May will say that the scheme is being halted “to allow the Government to remodel the scheme back to proportionate, common sense levels”.

She will add: “The safety of children and vulnerable adults is of paramount importance to the new Government.

“However, it is also vital that we take a measured approach in these matters. We’ve listened to the criticisms and will respond with a scheme that has been fundamentally remodelled.

“Vulnerable groups must be properly protected in a way that is proportionate and sensible.’’

Tim Loughton, the children’s minister, will say he was worried that the scheme would have driven a “wedge between children and well-meaning adults, including people coming forward to volunteer with young people”.

“Such individuals should be welcomed, encouraged, and helped as much as possible, unless it can be shown that children would not be safe in their care.”

Any vetting system “should not be a substitute for proper vigilance by individuals and society,” Mr Loughton will add.

“At the moment we think the pendulum has swung too far”.

Civil liberties campaigners welcomed the news. Dylan Sharpe, the Campaign Director for Big Brother Watch, said: “While the new Government’s tackling of vetting and barring is welcome, this cannot be just a temporary halt.

“The scheme is an unnecessary layer of bureaucracy that is doing serious harm to the relationship between children and adults.’’

Mr Sharpe added: “A review is not a solution – the vetting and barring scheme should be scrapped.’’

The scheme would have been run by the Independent Safeguarding Authority. Checks were to be made with the Criminal Records Bureau before adults could take up their posts.

Volunteers could register free of charge, while others would have had to pay a one-off fee of £64.

Some people are thought to have already paid to register with the scheme. Officials said voluntary registrations which had already taken place would be stopped immediately.

Last week, it emerged that the Royal College of Nursing was taking legal action over whether nurses, midwives and health care workers would have to register.